• No results found

Making Sense of Organizational Fields; Market Information Regimes and the Shaping of Intermediary Institutions in the Music Industry

N/A
N/A
Protected

Academic year: 2021

Share "Making Sense of Organizational Fields; Market Information Regimes and the Shaping of Intermediary Institutions in the Music Industry"

Copied!
81
0
0

Bezig met laden.... (Bekijk nu de volledige tekst)

Hele tekst

(1)

Making Sense of Organizational Fields;

Market Information Regimes and the

Shaping of Intermediary Institutions in the

Music Industry

by

Nick Busscher

University of Groningen Faculty of Economics and Business

MSc. Business Administration Strategy and Innovation

August 31st, 2013 MSc. Thesis Witte de Withstraat 10, 9726 EC Groningen 0623493888 busschernick@gmail.com Student number: 1918052

Theme: Shaping Institutions in the Music Industry Supervisor: prof. dr. W.A. (Wilfred) Dolfsma

(2)

Table of Contents

Abstract   3   1.   Introduction   4   1.1   Introduction   4   1.2   Problem  Definition   5   2   Background   6  

2.1   The  Consumption  of  Music   6  

2.2   Mainstream  and  Alternative  Music   8  

3.   Theoretical  Framework   11  

3.1   Behavioral  Economics   11  

3.2   Resource  Based  View   14  

3.3   Institutional  Theory   16  

3.4   Market  Information  Regimes   22  

3.5   Intermediaries   27   4.   Research  Methodology   31   4.1   Research  Strategy   31   4.1.1   Research  Model   31   4.1.2.   Defining  Variables   32   4.2   Case  Studies   33   4.2.1   Case  Selection   33   4.2.2   Interview  Strategy   35   4.3   Data  Analysis   37   5.   Results   38  

5.1   Case  1:  The  Oosterpoort   38  

5.2   Case  2:  Vera   44  

5.3   Cross-­‐case  Analysis   49  

6.   Discussion   51  

7.   Conclusion   54  

7.1   Answering  the  Research  Question   54  

7.2   Implications   55  

7.3   Limitations  and  Research  Possibilities   56  

Appendix   58  

A.  Interview  Format   58  

B.  Interview  Transcripts  (Dutch)   59  

References   76  

(3)

Abstract

Theory on market information regimes has implied that organizational fields are perceived based on a web of information provided by institutions. This study focuses on in what manner intermediaries, in particular concert venues in the mainstream and alternative music fields, shape their own institutions (music programs) in regard to the market information regimes they use. Previous studies placed high value on dominant institutions such as the Billboard charts, changes to its methodology, scope, or political tone have proven to have a large impact on the composition of fields. Case studies are used to test the impact of market information regimes on shaping institutions by explaining the motivations and the processes forming the music programs. From this it can be concluded that market information is essential for concert venues in order to form strategies and anticipate expected consumer behavior. However, the public nature of the information does not allow concert venues to gain a competitive advantage merely based on this information. The actual shaping of the music program is based on, and limited by, the offers from agents, which are largely determined by practical factors such as venue size, location, and touring schedules. The agents are the most important gatekeepers by composing the offers and selecting the artists.

Keywords: Market Information Regimes, Organizational Fields, Music Consumption, Behavioral Economics, Resource Based View, Gatekeeping, Music Industry.

(4)

1. Introduction

1.1 Introduction

The consumption of music is an expression of identity. People consume music to express what they like, with whom they want to be associated, and who they are (Dolfsma, 2006), yet musical preferences are not only formed individually. Preferences are often formed in socially oriented environments based on social values, and influenced by interconnected institutions (Scott, 2008). In his research on Pop Music Dolfma (2006) argues that socio-cultural values in Pop Music have been ‘institutionalized’. Institutions which influence the consumption of music and the formation of preferences can be music charts, magazines with reviews and interviews, radio-stations (e.g. programming), and other media.

(5)

General economics cannot explain the advent of pop music or alternative music because consumers form preferences in a social environment (Dolfsma, 2006). Consumers are not just trying to maximize the joy of consuming music, yet also take social factors into consideration. Institutional economics, the foundation on which the market information regime theory is built, will be applied to understand the role of shaping economic behavior in a social environment. In neo-institutional theory it is assumed that institutions not only influence the formation of preferences, they also are shaped by them. Since institutions are a mechanism or structure for governing social behavior, behavioral economics will also be taken in consideration.

Market or field niches in the music industry are comprised of different genres or subcultures. My focus in this paper will be on the so called ’mainstream’ (i.e. pop music) and ‘alternative’ music fields, since both of these fields are promoted by various venues, which gives me the opportunity to execute concise case studies regarding the market information regimes in the music industry. 1.2 Problem Definition

The mainstream music field allocates high value to influential institutions such as the music charts (i.e. market information regimes based on audience measurement systems) as a performance indicator and means to perceive the field. Most alternative music is not present in conventional charts, yet intermediaries need to acquire market information in order to make sense of the market and shape their own institutions (e.g. music programming or promotional items), thus they have to acquire the information from alternative institutions. A comparison of the mainstream and alternative music field market information regimes would provide valuable information concerning the different fields within the music industry. This study focuses on in what manner intermediaries, in particular concert venues in the mainstream and alternative music fields, shape their own institutions; specifically music programming, in regard to the market information regimes (i.e. institutional sources of information) they use and the anticipated consumption behavior of the target groups. In relation to the topic description in the introduction the research question is as follows:

(6)

2

Background

This paper aims on fields of music. In order to gain a clear understanding of these fields, an overview of the differences between them, the actors involved, and the nature of music consumption is provided.

2.1 The Consumption of Music

(7)

reports about the market, the so-called ‘market information regimes’, and they function as the main source of social information (i.e. information concerning the behavior of a group of people) which intermediaries need, in addition to their direct experience, to make sense of the market fields (Anand and Peterson, 2000). Cultural intermediaries also try to influence and manage consumer expectations and make use of consumption rituals by shaping their own institutions and attributes; concert venues shape institutions such as: communicational items (e.g. flyer design, website design, and style of writing), which bands to book (music programming), and live events (e.g. venue ambiance, comfort level, playing times, and ticket pricing).

The intermediary role of the concert venues, which obviously are a key part of the industry in both the mainstream and alternative fields, is to bridge the gap between the large institutions and the consumer. They have to attract people in and focus on the anticipated consumer behavior and manage their expectations by providing offers which are consistent with the expectations and previous experiences of the consumer. Local concert venues, such as the Vera and Simplon in Groningen, provide important infrastructure for local talent and (inter) national alternative bands, this support is essential for bands who are just starting out (Kruze, 2010). In addition, larger music venues such as the Oosterpoort offer a stage to mainstream (inter) national bands and large festivals, and appear to be focused more on dominant institutions such as TV shows and radio stations. This study will focus on the sources of information (i.e. institutions/market information regimes) of the concert venues and in what manner they give shape to their institutions.

The symbolic consumption of music in combination with the current integration of the record and concert industry (Koster, 2008) might lead to a more socially oriented consumption pattern, as the experience of music has increasingly become a group activity. The Internet gives consumers the opportunity to more actively share, and show friends and other connections with which music they want to be associated, leading to a further enhancement of the consumer’s active consciousness about how to present their identity with the use of music.

(8)

material goods such as records, it also includes consuming immaterial goods and services such as; listening to the radio, reading magazines, and experiencing live music events.

2.2 Mainstream and Alternative Music

In order to be able to make a thorough analysis of the mainstream and alternative music fields in relation to the market information regimes, the fields must be clearly defined. It must be noted that both the mainstream and alternative music fields are not specific genres, yet are categories of different types of music based on sets of common views and characteristics.

Mainstream Music

(9)

The early scene for pop music mainly existed around the sales of singles. With the introduction of albums around 1967, the market split up in two categories; music for the hit charts and pop/rock music, which focused more on young adults who were into festivals and live music (Steensma, 2008). Pop music in the charts can be perceived as somewhat superficial; studies show that this type of music mainly attracts teens due to the overall sound and beat of the song, not the lyrics (i.e. verbal content) or meaning of the song (Robinson and Hirsch, 1969).

For instance, pop music in the Dutch hit charts (top 40) throughout the century includes: Elvis Presley, Cliff Richard, The Supremes, The Carpenters, The Steve Miller Band, John Travolta, Duran Duran, Kim Wilde, M.C. Hammer, Backstreet Boys, Spice Girls, Britney Spears, Krezip, Di-rect, Sean Paul, Jan Smit, De Jeugd van Tegenwoordig, and Three Doors Down (Steensma, 2008).

Alternative Music

Alternative music, (also named Britpop (90s), Indie (Independent abbreviated, 80s), and New Wave (70s) is a form of music by artists who primarily see music as a form of expression, , and not primarily as a way to earn profits (Steensma, 2008). Alternative music is based mainly on Britpop, which obviously originated in the United Kingdom, and Indie (rock), which has its origins in the United States, the United Kingdom, and Canada. The growing popularity of guitar rock developed simultaneously with the rise of the independent music industry, which included record labels, venues, and magazines (Keunen, 2002; Steensma, 2008). A number of popular grunge bands, one of which Nirvana, were among the first alternative bands to become (alternative) mainstream (Keunen, 2002). Grunge (or alternative) music, which included conformist applications of traditional grunge elements, was not new, yet was labeled as such by the media and industry, and experienced as such by consumers (Keunen, 2002). While the music had certainly become popular and commercially successful, it was still a distinctly alternative, compared to mainstream Billboard charts, which in the 90s mostly consisted of pop and house music. Keunen (2002) argues that alternative rock supported the introduction of guitar-rock to a broader and younger audience, often called the alternative mainstream.

(10)

to the ‘music as a form of expression’ view described earlier. This duality between expression and economic incentives has always been a difficult subject for alternative music. The DIY attitude does not mean that ‘alternative’ labeled artists and bands are not at all commercial as they obviously need to make profits in order to be able to sustain their careers. Connell and Gibson state “staying local and playing small club and pub circuits is prized by some bands and labels, who believe that these activities connote a degree of ‘authenticity’ that breaking through to larger, more heterogeneous audiences would not” (2002: 278). “Yet indie pop and rock musicians have always existed in relation to the mainstream music industry, and they cannot exist unless many parties involved in their production and dissemination find it profitable” (Kruze, 2010: 631).

Examples of alternative music artists are for instance; Joy Division, Gang of Four, Manic Street Preachers, Oasis, Kasabian, The Zutons, Bloc Party, Kaiserchiefs, Silverchair, and Editors (Steensma, 2008).

Defining the Undefinable

While it may seem straightforward to categorize an artist as either mainstream or alternative, the exact opposite is true. Many artists move from alternative to mainstream or cannot simply be characterized as either one as mainstream music often evolves from underground alternative music (e.g. house music). Some alternative artists would love to become mainstream, yet there are others who clearly renounce mainstream music.

Table 1

Characteristics of Mainstream and Alternative Music Fields

Mainstream Alternative

Fundamental View / Scope Utilitarianism: Commercial Success / Maximization of Wealth

Idealism: Music as a Form of Expression / Artistic goals

Target Audience Teenagers / Commercial radio

Audiences (all ages) Music Enthusiasts / early adopters of new music / local music lovers

(11)

3. Theoretical Framework

3.1 Behavioral Economics

With the use of behavioral economics literature I will elaborate on the fact that the consumption of music and the choices involved are not always sensible and rational, yet are systematic and predictable (Ariely, 2009). I will explain some irrational social decision making phenomenons which are relevant in relation to studying market information regimes and the dynamics of institutions in different fields of music.

Expectations and Experience

According to social psychology and behavioral economics researcher Dan Ariely (2009) expectations enable us to make sense of situations, they are our frame of reference. Expectations are formed by various sources of information and previous experiences. The actual experience of a product or event is greatly influenced by expectations. Ariely (2009) states that telling your friends about positive movie reviews will lead to increased enjoyment of that specific movie. In addition, he provides a revealing example to what extent expectations matter in a cultural environment. For this research, Ariely had world-famous violin player Joshua Bell performing at a metro station in Washington D.C., a setting in which normally only ordinary buskers perform. The extremely talented Joshua played for one hour; 27 out of 1,097 (2.5%) people who passed by gave Bell some money and only seven people stopped and listened for longer than one minute (Ariely, 2008: 218). People who walked by stated that the music sounded fairly better than average or that they did not notice the music at all. The environment of a metro station is perceived by people as one in which the quality of the music is usually low, since it is generally populated by ordinary buskers. These low expectations resulted a low quality experience. Ariely and Bell concluded that expectation is an important factor for the way we consume and perceive music. A similar conclusion is made by Cialdini (2009) and his research on the power of pricing. He argued that low prices will lead to low expectations and less satisfactory experiences, while high prices lead to higher expectations and more satisfactory experiences.

(12)

concert and has not decided where to go, he can acquire information from institutions; such as reviews in popular music magazines or the music program of a venue he frequently visits (Anand and Peterson, 2000). Both sources will provide relevant information based on specific interests. Intermediaries such as concert venues are able to shape their own institutions such as music programming and communicational items, while their influence on more dominant and critically acclaimed (legitimate) institutions such as popular music magazines and radio stations is relatively low. For intermediaries, managing the expectations of the consumer proves to be important. Intermediaries need to be cognizant of the developments in their field in order to manage the consumer’s expectations; in addition to the direct experience of the market they have to acquire information from external institutions to be able to shape their own institutions and meet the consumer’s expectations.

Conscious Consumption

(13)

more conscious about their choices, often leading to choices, to such an extent that choices are based on conveying a desirable image instead of maximizing enjoyment.

Conformity and Commitment

Conformity occurs in a variety of social groups, for example religious groups, companies or groups of friends (Cialdini, 2009). People in a group often have a common culture or perspective, leading them to unconsciously behave similar, or because of experienced social pressure. An extreme example of this is the mass suicide of 909 members of the cult led by reverend Jim Jones in 1977 (CNN, 2008). People even tend to conform to the norms of a group when they are alone. In addition, Cialdini (2009), writing about commitment and consistency, states that people more often stick to a view or goal after they have committed to it verbally or in writing. As an answer to why this is, he argues that people will try to reduce dissonance in order to establish ideas and views that are congruent with their self-image. Being inconsistent is something that people find undesirable (2009: 53). Consistency is valued in our lives, and is appropriate in most circumstances. When a person expresses different views and words he is perceived as being confused or possibly not well. According to Cialdini (2009: 53) “A high degree of consistency is normally associated with personal and intellectual strength”. He adds that people even stick with ideas even after the initial motivation for the idea is lost.

(14)

3.2 Resource Based View

According to the resource based view of a firm, which traditionally represents the inside-out view of a company, a company’s resources and capabilities “are the central considerations in formulating its strategy: they are the primary constants upon which a firm can establish its identity and frame its strategy, and they are the primary sources of firm profitability” (Grant, 1991: 133). Subsequently Barney (1991) and Daft (1983) argue that resources such as capabilities, organizational processes, and information allow a firm to create and implement a strategy that improves organizational efficiency and effectiveness, possibly leading to a competitive advantage. Competitive advantage is described by Barney (1991: 102); “a firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors”. The acquisition of market information, in addition to a company’s direct experience of the market, leads to lower uncertainty about the market (Pfeffer and Salancik, 1978), therefore enabling actors to improve their strategy and become more profitable. Based on the theory developed by Anand and Peterson (2000), I can be assumed that markets do not exist by nature, yet are based on the “generation, distribution, and interpretation of a web of information about activity in the market” (2000: 271). This means that the acquired market information is the principal source by which intermediaries in the market comprehend their own actions and those of consumers, suppliers, and competitors, making it a key resource. Information from various institutions is needed in order for other participants of the market to function properly.

In order for a firm to gain a competitive advantage a resource must contain four attributes: 1. Valuable; it must provide an opportunity of the possibility to neutralize a threat. 2. Rare among competitors and possible new entrants.

3. Imperfectly imitable; not easily replicable.

4. No substitute resources are available which are not rare nor imperfectly imitable. Source: Barney, 1991: 106.

(15)

shape their own institutions, by programming certain bands or designing communicational attributes. Market information can provide an opportunity or neutralize a threat, for example getting a chance to program the next best band, proving the resource to be valuable.

In this sense the information distributed to actors provides opportunities and minimizes threats. It minimizes the threat for intermediaries of missing out on the next best thing, or falling behind on what is popular. Market information can be mobile and available to all actors in the market, probably making firms identical in the resource they control, and preventing them from gaining a first mover advantage or a competitive advantage merely based on market information. However, a particular piece of information may only be available to a small group of actors, enabling them to gain a competitive advantage, as long as this group is not large enough to create perfect competition (perfect information) in the market.

While some pieces of information may provide particular firms with competitive advantage, this will only be true if competitors or new entrants are not able to obtain or imitate these resources. A firm can achieve imperfect imitability in three ways;

a. A firm is only able to obtain the resource based on unique historical conditions.

b. Causal ambiguity; the source of a firm’s competitive advantage is unknown or not easily understood.

c. The resource which drives the firm’s competitive advantage is socially complex.

Specific market information is only valuable when there is no substitute information which is not imperfectly imitable or rare.

(16)

3.3 Institutional Theory

“An institution consists of a concept (idea, notion, doctrine, interest) and a structure.” (Sumner, 1906: 53). Scott explains how “the concept defines the purposes of the functions of the constitution, whereas the structure embodies the idea of the institution and furnishes the instrumentalists through which the idea is put in action” (2008: 9). The most important institutions in daily life are “language, government, [religion], laws and customs of property, and family” (Cooley, 1902/1956: 313-314). While these institutions appear to be independent and objective, since they seemingly cannot be easily influenced, they actually “are developed and preserved through interactions among individuals” (Scott, 2008: 9). Cooley simplifies this by stating that “the individual is always cause and effect of the institution” (Cooley, 1902/1956: 313-314). Hallet and Ventresca elaborate on this by stating that “institutions exist in the integrated and standardized behavior of individuals” (Hughes, 1939: 319). Institutions represent the social values of a group of people, they are “settled habits of thought common to the generality of men, associated with people interacting in groups or larger collectives” (Ackerman, 1997: 653). In his research on pop music Dolfsma (2006) argues that socio-cultural values have been ‘institutionalized’.

Institutionalized Social Values

(17)

Institutions which influence the consumption of music and the formation of preferences can be music charts, magazines with reviews, radio-stations (i.e. programming), and other media. Institutions often depict what is legitimate and what is illegitimate, based on cultural, legal, and moral boundaries. Nevertheless, institutions also provide support to actors and activities (Scott, 2008). For example; booking mainstream bands in an alternative music venue will probably result in bad press from critically acclaimed music journalists, thus setting the rules on what is deemed appropriate and what is not.

Institutional Legitimacy and Influence

“Institutions shape individuals’ behavior, but only when they are seen to be legitimate” (Dolfsma, 2002: 455). “The tendency to obey legitimate authorities comes from systematic socialization practices designed to instill members of society the perception that such obedience constitutes correct action” (Cialdini, 2008: 195). In practice, consumers and intermediaries give more value to institutions with a high level of legitimacy. Reviews in popular music magazines such as Rolling Stone, which is perceived as highly legitimate, often have a large impact on sales. Cleary, local and less recognized bloggers do not have the same level of authority and do not have the same reach (i.e. number of readers), thus they are perceived as less legitimate.

Resources and Isomorphism

(18)

isomorphism as an important consequence of both competitive and institutional process”. He calls this “institutional isomorphism” (Scott, 2008: 43). The mechanisms of institutional change, according to DiMaggio and Powell (1983: 150-152):

1. Coercive

“Coercive isomorphism results from both formal and informal pressures exerted on organizations by other organizations upon which they are dependent and by cultural expectations in the society within which organizations function.” Actors in a certain field are subjected to legal and technical requirements such as tax regulations and copyright laws. In addition there are non-governmental organizations and institutions which set rules and regulations. Standardized performance measurement systems like the Billboard music charts are an example of this. A mainstream concert venue might use these charts to determine which artists to program. The venue could easily risk losing consumers by programming artists that fall outside the consumers frame of reference. A frame of reference that is guided by the information provided. These output controls narrow the companies’ ability to create value in a structurally different way than their competitors, and lead to similar control systems and rituals within market fields. Not meeting the expectations of the consumer might result in consumers perceiving the venue as having a low level of legitimacy, in other words; the venue might not even be viewed as a legitimate mainstream venue at all.

2. Mimetic

“Mimetic isomorphism resulting from standard responses to uncertainty.” Uncertainty can take a number of forms; environmental uncertainty, the inability to understand technologies, or ambiguous goals. In order to cope with uncertainty companies often model themselves to competitors; they look at competitors to get an idea of what to do, this is called mimetic isomorphism. Modeling can be done in a variety of (un)intentional ways; via employee transfers or via consulting firms which only apply a small number of business models, and is done to improve the level of legitimacy. “Organizations tend to model themselves after similar organizations in their field that they perceive to be more legitimate or successful” (DiMaggio and Powell, 1983: 152).

(19)

“Normative isomorphism, associated with professionalization. This typology is an analytic one as the types are not always empirically distinct” (DiMaggio and Powell, 1983: 150). For instance, universities teach students professional norms and create behavioral standards, and people who participate in boards, trade organizations or other business communities also act alike in order to gain legitimacy. This is even more so for fields which are partly government funded, such as the music industry. Employees of organizations in active in these fields often also participate in government boards, grant committees, or give the government advice on cultural policies (Dimaggio, 1982). Obviously, companies only receive government funding when they meet a certain set of standards or oblige to a set of standard operating procedures, which in turn leads to more similarity.

According to Anand and Peterson (2000) most institutional theorists have focused on non-profit fields such as government agencies, politics (e.g. Karl Marx), and education. They state that the main difference between these fields and commercial fields is that commercial companies derive critical resources from their market, while the non-profit fields mainly focus on general regulations and professional norms. As described earlier in regard to the ‘resource based view’, these critical resources enable companies to construct and implement a strategy.

Scott (2008) has developed the “Three Pillars of Institutions” regarding the understanding and workings of institutions. These three elements form a “continuum from the conscious to the unconscious, from legally enforced to the taken for granted” (Hoffman, 1997: 36) and are all basis for gaining legitimacy. Scott (2008) also notes that there not necessarily is one single component, in effect it often is a mixture of more than one.

TABLE 2

Three Pillars of Institutions

Regulative Normative Cultural-cognitive Basis of Compliance Expedience /

Suitability Social obligation Taken-for-grantedness

(20)

Mechanisms Coercive Normative Constitutive schema

Logic Instrumentally Appropriateness Orthodoxy / Tradition

Indicators Rules

Laws Sanctions

Certification

Accreditation Common Beliefs Shared logics of action

Isomorphism

Affect Fear of Guilt /

Innocence Shame / Honor Certainty / Confusion

Basis of Legitimacy Legal Morally governed Comprehensible

Recognizable

Culturally Supported Source: Scott, 2008: 51.

Regulative Pillar

The regulative pillar is based on formal rules and unwritten codes of conduct (North, 1990). Penalties will be given to those who do not apply with the rules, and regulation is actively enforced in a coercive manner (e.g. fines/punishment, rewards for compliance) by the government or a government agent.

Normative Pillar

In addition to the ‘normative isomorphism’ described earlier (DiMaggio and Powell, 1983); “organizations operating in different functional sectors are legitimated by differing values, exhibit different adaptive patterns, and are governed by different codes and normative frameworks. Moreover, value systems are stratified within a society such that organizations serving more highly esteemed values are thought to be more legitimate and expected to receive a disproportionate share of societal resources” (Parsens, 1953 in Scott, 2008: 24). Values represent the desired state, and the norms specify in what manner actions should be executed or “how specified actors are supposed to act” (Scott, 2008:55). “A normative conception stresses a deeper, moral base for assessing legitimacy. Normative controls are much more likely to be internalized than regulative controls, and the incentives for conformity are hence likely to include intrinsic as well as extrinsic rewards” (Scott, 2008: 61).

(21)

“A cultural-cognitive conception of institutions stresses the central role played by the socially mediated construction of a common framework of meaning” (Scott, 2008: 59). This social reality, which is based on symbolic systems, is perceived to be objective, while in fact is based on

subjective beliefs that have developed over time. Scott (2008: 57) defines this as “the centrality of cultural-cognitive elements of institutions: the shared conceptions that constitute the nature of social reality and the frames through which meaning is made”. He furthermore states that “the new cultural perspective focuses on the semiotic facets of culture, treating them not simply as subjective beliefs, but also as symbolic systems perceived to be objective and external to individual actors” (Scott, 2008: 57). Douglas (1982: 12) makes a worthy contribution in this context by stating that “we should treat cultural categories as the cognitive containers in which social interests are defined and classified, argued, negotiated, and fought out”.

While these pillars provide us with distinctions of the basic institutional forces, in practice often elements of more than one pillar are observed (Scott, 2008). When observing major institutions in the music industry, the normative and cultural-cognitive pillar are most likely to be dominant. Artists are bound to copyright laws (regulative), and in order to get airplay in the Netherlands they have to act in accordance with a certain set of standards deemed to be professional. The distinction between popular or mainstream music and alternative music can be characterized as a framework of common meaning (cultural-cognitive), which is perceived to be objective.

Organizational Fields

(22)

3.4 Market Information Regimes

It is suggested by Anand and Peterson (2000) that in competitive fields, such as the music industry, information provided by institutions is needed to make sense of the market. “Markets should be seen as instituted information fields. The way in which information is collected, disseminated, and interpreted is necessarily institutionalized” (Dolsma, 2002: 455). An example of this are music charts, which rate the popularity of songs based on sales volume information that is used to get a better understanding of the mainstream music field (Anand and Peterson, 2000; Dolfsma, 2005). “The cognition of the markets occurs through the creation, distribution, and interpretation of a web of information about the market” (Anand and Peterson, 2000: 270). Institutions accumulate reports about the market; the available information is called a ‘market information regime’. Which functions as the main source of social information (i.e. information concerning the behavior of a group of people) for actors who need to make sense of the market fields. “An information regime comprises regularly updated information about market activity provided by an independent supplier, presented in a predictable format with consistent frequency, and available to all interested parties at a nominal cost” (Anand and Peterson, 2000: 271), they are “the medium through which producers observe each other and market participants make sense of the world” (Anand and Peterson, 2000: 272).

(23)

measurement systems’. Anand and Peterson (2000) have thus proven that the constitution of a field is inherent to the market information regimes, since changes in a regime in terms of scope, tone, and methodology will also change the perception and cognition of a field by its participants. “Market information regimes have three characteristics. First, they provide the attention focus for an organizational field. Second, they essentially serve to help participants make sense of market activity within the field. Finally, market information regimes are socially and politically constructed and are hence fraught with biases and assumptions that are largely taken for granted” (Anand and Peterson, 2000: 271). They also argue that the introduction of new market information can create new niches. An example of this is the introduction of disco music, which was not visible outside of the originating clubs until Billboard devoted a special chart to it. Variations within information regimes can therefore lead to differentiation within fields. As these examples demonstrate; an intermediary’s strategic decision making is greatly influenced by market information regimes.

TABLE 3

Characteristics of Market Information

Factor: Influence:

1. Common Focus of Attention The Billboard chart provided a central performance chart to which all actors could measure their success, actors began to use the chart as a main source of information on market activity, thus generating increased sense making.

2. Regime Dependence The constitution of a field is information

regime dependent, changes to the scope, methodology, or tone will change the perception of the field.

3. Inclusion of New Categories Leads to New

(24)

Companies can and do individually gather market information (i.e. direct experience), however this often results in an incomplete view of the market (Heimer, 1985). Therefore the pooling of information is needed in order to provide a comprehensive view of the market (Anand and Peterson, 2000). Not using external sources of information will result in a disadvantage possibly leading a company to take strategic decisions which are not consistent with market demand or the general outlook within a field, thus harming the company’s competitive position. March and Simon (1958) state that organizations make use of predictable routines in order to process the market information, following a set of rules and requirements, leading to a limited number of searches. I will elaborate on this more in the theory on gatekeeping (Shoemaker and Vos, 2009). Proposition 3: Intermediaries are bound to using information provided by market information regimes in order to shape institutions which satisfy and correspond with the consumer’s expectation patterns.

Audience Measurement Systems

(25)

important function of audience measurement systems research into audience measurements systems is still fragmented. ”Exploiting the idiosyncrasies of audience measurement are key elements of media industry strategic decision making” according to Andrews and Napoli (2006: 34), this statement corresponds with the arguments of Anand and Peterson (2000) on the importance of the market information regimes as a strategic tool.

The impact of an audience measurement system on the music industry can be illustrated easily by investigating the impact of the introduction of Soundscan, a new system that provided more accurate and up to date information, for the Billboard charts (Anand and Peterson, 2000). The new measurement system revealed that some genres were actually performing better or worse than previously assumed, more records reached number one positions in a more timely fashion, and less records by independent labels made the charts (Anand and Peterson, 2000). These revelations indicate that the introduction of a new measurement system and the subsequent alterations in the market information regime often lead to a changed perception of consumption patterns, which subsequently leads to strategic actions to exploit the information available (Napoli, 2003). The developments of the audience measurement systems in the music industry are consistent with the general movement towards more scientific and rational approaches, “in which audience research [becomes] increasingly central to content production, distribution, marketing, and scheduling decisions” (Andrews and Napoli, 2006: 36). The composition of the market information regimes, or the methods used for framing market information are vital to the social construction of the market (Anand and Peterson, 2000). The Soundscan system may be based on analysis of music sales data, yet regimes in other fields are still based on no more than rumor and buzz. Some regimes are known to be erroneous, but they have become institutionalized and cannot easily be changed.

(26)

Lock-in

Andrews and Napoli (2006) describe the possibility of bestseller lists becoming self-fulfilling prophecies in the book publishing industry. Best sellers lists are often used by other media and stakeholders (e.g. resellers, radio stations, TV stations, and newspapers) to determine which products to feature: leading to increased media coverage and advertising, in turn leading to an increase in sales of the featured products. This process is comparable to the lock-in process of technologies by historical events (Arthur, 1989). Typically, within this process typically one technology gains an early lead (often by chance or a minor event) leading other early adopters to follow and choose the same technology over an alternative. With the consequence that the market will devote itself to one technology, even though this technology may not be the most effective (Arthur, 1989). I must noted that the previous process is only accurate for technology adoption in which an increase in the number of users also leads to increased returns for its users. Within these adoption processes the market corners as soon as a certain tipping point is reached, which causes other potential adopters to follow as its benefits from use increase (e.g. support, joint promotion, compatibility etc.).

It is very likely, considering the comparable nature of the products (i.e. increasing returns; promotions, coverage etc.) that this phenomenon also is present in the music industry. Different studies (Anand and Peterson, 2000; Andrews and Napoli, 2006) suggest that new systems have a negative effect on less mainstream media products in the TV, book publishing, and record industry, as the increased rate of information leads publishers to favor more mainstream products due to the increased returns of one alternative over the other. Going with the flow (featured mainstream/popular products) gives an actor or media entity additional media coverage plus more potential interest from consumers, as they are likely to be already familiar with, and fond of, the product, be it recorded music or a book.

(27)

suboptimal products, and the premature abandonment of possible superior products. However, Andrews and Napoli (2006) do however note that the increased availability of information concerning preference and consumption patterns enables publishers to more effectively target specific market niches.

Proposition 5: The use of dominant market information regimes in the form of audience measurement systems promotes the use of popular music over (up- and coming) alternative music.

Sub-question: do intermediaries feel inclined to prioritize information based on audience measurement systems more than other sources of information, resulting in choices for popular music instead of potential better artists?

3.5 Intermediaries

(28)

TABLE 4 Intermediary Roles

Roles: Sub-functions:

1. Aggregate buyer demand or seller products; in order to achieve economies of scale

a. Determination of product offerings b. Searching

c. Price discovery 2. Facilitate the market by reducing

operating costs (e.g. coordinate information exchange)

a. Logistics b. Settlement c. Trust

3. Match buyers and sellers a. Legal

b. Regulatory

Sources: Bailey and Bakos (1997); Bakos (1998), and Giaglis, Klein, and O’Keefe (2002). Gatekeeping

The process of gatekeeping was first described by Lewin in his post-war research on social change in 1947 (Shoemaker et al., 2001). Lewin (1947) described how ‘items’ are selected or rejected, and move through certain ‘channels’ and suggested that this could be applied to news as well. These channels can be seen as a series of decision points in which an item is passed or halted (Shoemaker et al., 2001). Shoemaker and Vos state “gatekeeping is the process of culling and crafting countless bits of information into the limited number of messages that reach people each day, and it is the center of the media’s role in modern public life” (2009: 1).

(29)

feature in their programming. The third gate is the end-user; the consumer. The consumer decides mostly on the bases of preferences, based on socially oriented institutions as described earlier, whether they consume the music. Dolfsma (2005) describes the importance of gates to subsequent audiences, which include various media and promoters. In relation to the current integration of the record- and concert business (Koster, 2008), these subsequent audiences and gatekeepers have gained even more importance over the last few years. It appears that the role of the record companies and the traditional media is diminishing and more power is invested into the consumers and online media. Nowadays, music can be shared more easily nowadays, for example with streaming services like Spotify and social media. A recent study by Nielsen (2012) shows that 98 percent of the consumers trust a recommendation from a friend, while only 58 percent trust ‘editorial content’ (e.g. critics) and ‘branded websites’.

Definition of Gatekeeping

The process of selecting or rejecting works of music (items) by different intermediaries at subsequent gates between the creator of music and the end-user (consumer).

TABLE 5 Levels of Gatekeeping

Level: Description:

Individual selection is influenced by individual communicators Communication Routines a certain procedure of selection norms exists Organizational group decision making in specific settings

Social Institution the content is influenced by markets, audiences, advertisers, and interest groups.

Social System social system or ideology of a society

(30)

If we would take the concert venues for example, the subject of the case study in this paper, which would be a ‘media channel’ according to the definitions of Christianen (1995), since the venue is used of target a specific audience. The role would be ‘aggregate buyer demand or seller products; in order to achieve economies of scale’, sub-function a: ‘the determination of product offerings’, since the venue determines which artists to feature in their programming. In conjunction with the earlier described organizational routines (March and Simon, 1958), it proves very likely that intermediaries (i.e. gatekeepers) such as concert venues use a standard set of information sources (major institutions) and standardized rules to make decisions and shape their own institutions such as music programming. Routines save the intermediaries time and ease the selection process, sinceit narrows down the available choices.

(31)

4. Research Methodology

4.1 Research Strategy

This study is based on qualitative exploratory research, in which theoretical and practical knowledge are combined to constitute a basis for further studies (Cooper and Schindler, 2008). A series of case studies will be executed in order to make a thorough comparison of concert venues in the mainstream and alternative music fields with regard to their use of market information regimes and in what manner they use the information to shape their own institutions. I have chosen the music program of concert venues as the main unit of analysis. The decisions and process of shaping this institution with regard to market information regimes is the main focus of this study. Concert venues are one of the main intermediaries in the concert and music industry and have gained importance since the decline of music sales in the first decade of the 21st century (Koster, 2008). The choice for music programming as a unit of analysis feels natural since it represents the core business of the intermediaries within the music industry fields better than other institutions such as; marketing communications or live event organization. The case studies will include a series of interviews, The interviews will be focused on in what manner music programmers make sense of the market, how they select market information regimes, and on what basis they choose certain information to use in their decision making regarding the booking of artists.

4.1.1 Research Model

(32)

FIGURE 1 Conceptual Model

4.1.2. Defining Variables

The focus of this study requires a clear distinction between different institutions; market information regimes (i.e. external institutions) and institutions shaped by intermediaries, in this case the music program shaped by the concert venues. Market information regimes are the third party suppliers of information, they have a high level of perceived legitimacy and often influence consumers directly (e.g. radio). The institutions are shaped by the intermediary concert venues and operate on a local basis (e.g. Vera’s music program).

FIGURE 2

(33)

4.2 Case Studies

In order to evaluate the propositions I will execute case studies of intermediaries in both the mainstream and alternative music fields. Case studies provide a “full contextual analysis of fewer events or conditions and the validity of design” have proven to be quite suited to evaluate situations (Cooper and Schindler, 2008: 144) and ‘how’ and ‘why’ questions (Yin, 2009). “To understand or explain any action, the analyst must take into account not only the objective conditions, but the actor’s subjective interpretation of them” (Scott, 2008: 57). These in-depth results can only be acquired through the use of case studies. While there is a significant amount of critic suggesting case studies do not provide the amount of data needed for a complete scientific study, it may offer new insights into existing theories and function as a starting point for future quantitative research (Yin, 2009; Cooper and Schindler, 2008). It is more time consuming to use a multi-case design, I have chosen to do so since it will enable me to execute cross-case analysis, increase external validity, and obtain a deeper understanding of the subject (Cooper and Schindler, 2008; Yin, 2009). The basis for the case studies will be two rounds of individual depth interviews (IDI) combined with case information obtained from the subjects’ websites and other information sources such as company reports (if accessible). The interviews will be more conversational oriented than strictly structured (Cooper and Schindler, 2008; Yin, 2009). The first round will be used to form a broad image of the market information regimes used by the intermediaries to make sense of the field and shape their own institutions. I will provide additional basic information regarding the market information regimes, and execute a second round of interviews focused on these regimes to find out in what manner they think they are influencing intermediaries and field perception. This level of results is needed because I want to gain insight into the motivations of the choices which intermediaries make.

4.2.1 Case Selection

The following research protocol is used to safeguard the reliability and validity of the study by maximizing the replicational conditions; i.e. the next case would be researched in a similar fashion (Yin, 2009). Factors which influence the quality as formulated by Yin (2009: 24):

(34)

2. Internal validity: the establishment of a causal relationship; does one change lead to another by explanation building and using logic models.

3. External validity: the establishment of a domain in which the results can be generalized; using replication logic.

4. Reliability: demonstrating the operations of a study; using the research protocol.

I have chosen to select music venues located in the city of Groningen, this enables me to some extend to control the audiences in regard to geographical conditions, possible preventing unwanted results. The Oosterpoort and the Vera have been chosen for three main reasons; (1) they represent the two main broad fields of music (theoretical replication; some contrasting results for expected reasons), this sample combined provides representative image of music venues in general and a starting points for further research into differences between mainstream and alternative music fields, (2) they are both critically acclaimed venues, and (3) they are both located in the city of Groningen. The data from the interviews will be combined with company reports and online information regarding the cases and the market information regimes, this data triangulation will increase the quality and corroboration of facts as much as possible (Yin, 2009). The results will not be fully generalizable for all concert venues in the Netherlands since audiences differ throughout the country, but, the results will give an indication of the workings of music venues and the use of market information regimes by concert venues in general.

(35)

Source: work of the author, based on models from COSMOS Corporation in Yin, 2009. The case studies will include interviews with senior employees or decision makers (ideally music programmers) of the intermediaries. The cases include concert venues only, the results will therefore necessarily not be representative for other intermediaries. I will contact these intermediaries via my own network in the local music industry. The interviews will be structured around the research question combined with the central topics based on the theory.

Case Profiles

Both the Oosterpoort and the Vera receive financial support from the government (Performing Arts Fund NL, 2013). The Oosterpoort is one of the largest mainstream concert venues in the North of the Netherlands, with a capacity of 1600 seated places and two concert rooms. The venue hosts a number of festivals every year, including; Eurosonic/Noorderslag, Take Root, Rhythm & Blues Night, and the Jonge Harten Festival (De-oosterpoort.nl, 2013). The focus of the venue is to provide a diverse program for a target audience of different ages in a comfortable setting. The Vera is considered an underground/alternative music venue, they are the self-proclaimed “club for the international pop underground” (Vera, 2013). In addition to programming alternative music, the Vera also shows art movies and has its own art division which creates specially pressed concert posters and used to have its own printed magazine, which has recently gone digital. The Vera is famous for bringing hot new artists which later achieve world fame. Artists and bands who played at the Vera include; U2, Simple Minds, Sonic Youth, Nirvana, Pearl Jam, and Franz Ferdinand (Vera.nl, 2013). The venue’s audience partly consists of a community like group, called ‘veranen’, which visit the venue on a regular basis. 4.2.2 Interview Strategy

(36)

every interview (Cooper and Schindler, 2008). All interviews will be recorded in order to focus attention on the interviewees during the interviews.

Structure

1. Student and topic introduction.

2. Identity Information; name, age, function description, experience in the field. 3. Questions (interview format can be found in Appendix A):

- Target audience; what is the main target audience? - Market boundaries; which music is included/appropriate? - Performance; how is program performance measured? - Where do you find new artists?

- What are the most important resources when programming music? - What factors are important when deciding to book an artist? - How do you define which artists are a good fit?

- How and why are artists booked?

- How do you anticipate on the audience expectations and behavior? - Are other venues an example for you?

- Are there formal or informal rules or prescriptions to which you are bound? Subjects

1. The Oosterpoort

Marije Brouwer is, together with Peter Sikkema, responsible for the mainstream music program. She has been working as a programmer at the Oosterpoort for a couple of years and has experience with music programming and artist production at various music festivals such as Eurosonic/Noorderslag and Noorderzon. My initial goal was to interview both Marije and Peter, only to learn that Peter is very busy and therefore did not have time to participate.

2. Vera

(37)

4.3 Data Analysis

The results will be analyzed per case in the results chapter with use of the theoretically formed propositions. Differences and similarities of the cases will be discussed separately. The strategy used to assess the propositions is so-called ‘explanation building’, in which the goal is to explain motivations and discuss why or how something happened by describing causal links (Yin, 2009).

(38)

5. Results

In this chapter the results of the case studies will be presented, both cases will be analyzed separately with the use of the theoretically based propositions. Cross-case analysis will be handled inparagraph 3.

5.1 Case 1: The Oosterpoort

Proposition 1: Information provided by institutions, in the form of market information regimes, is the key resource by which actors are able to form strategies and gain a competitive advantage. Sense Making in Mainstream Music

The programmers at the Oosterpoort pay close attention to the various media (radio, TV, online magazines etc.), and maintain an extensive network of industry professionals, these elements are combined to create a vision of the mainstream music field.

(39)

order to expand their network. In addition to this, Marije and her colleague Peter also participate in the Eurosonic/Noorderslag music programming team and work at other festivals such as Noorderzon. The extensive networking used and the value Marije places on networking leads me to assume other actors are also networking, therefore it will not be a rare resource among competitors. Widely used music charts which are based on audience measurement systems (i.e. sales/streams etc.), such as the Top 40, are not commonly used by Marije. This information includes a high number of popular foreign artists and others which are not suited for the Oosterpoort because of the limited venue size, the location, and the local audience, making the information not particularly valuable.

Shaping the Institutions

(40)

young audience). Based on the results I can conclude that the information provided by institutions is essential when forming strategies, it does however not provide the opportunity to gain a competitive advantage due to the public and mobile nature of the information.

Proposition 2: Market information as a resource can only lead to a competitive advantage when competitors or new entrants are not able to obtain or imitate this resource.

Information as a Resource

(41)

Noord do give an indication of the local audience’s preferences, yet these stations do not provide airplay for upcoming mainstream artists as much as 3FM and other artists programmed at the Oosterpoort. Stating that local audience knowledge is unknown for others or not easily understood seems to be a stretch since basic differences between geographical audiences are known. This means that knowledge about local audiences does not constitute a source of competitive advantage.

Proposition 3: Intermediaries are bound to using information provided by market information regimes in order to shape institutions which satisfy and correspond with the consumer’s expectation patterns.

Anticipating Consumer Behavior

“Institutions shape individuals’ behavior, but only when they areseen to be legitimate” (Dolfsma, 2002: 455). The Oosterpoort has a reputation for programming quality mainstream acts, including both upcoming and established mainstream acts. In order to maintain this reputation the Oosterpoort anticipates the expected consumer behavior based on the information from legitimate institutions such as 3FM. Music consumers base their expectations mainly on these institutions and on past experiences.

(42)

The 3FM radio station is considered the leading source of information, and although Marije feels that she is not bound it, the information is definitely valuable. The information is mainly used in addition to various other institutions such as TV program De Wereld Draait Door, and music platform 3voor12. The format of radio has existed for years and traditionally is one of the main sources of music for both consumers and actors in the field. Radio is incorporated in the lives of many people, since everyone has access to radio in their cars, at home, and on their phones. The political tone is mostly focused on entertainment, providing joy and bringing new music. 3FM often cooperates with other institutions such as De Wereld Draait Door, De Beste Singer Songwriter, and 3voor12. 3FM provides information regarding the popularity of artists by choosing music for the ‘3FM playlist’, this list is constructed by the DJs and a team of editors based on music presented by so-called pluggers (3FM, 2013). Pluggers are intermediaries who get paid to present music to radio stations and other media, they traditionally work for record labels, yet artists can and do also hire them on their own (3voor12, 2013). The playlist is distributed throughout the music industry on a weekly basis to record labels, distributors, and artists (3FM, 2013). Substitute resources are mostly the other media such as tv shows and magazines, although they do not provide the exact same information (i.e. different format). Marije will often look at various social media to check an artist’s reach looking at Facebook fans (likes) and Youtube views. In addition she often uses her network by calling her colleagues at other venues inform about band performance, ticket sales, and audience experience. To anticipate on local audience expectations she has regular contact with the Plato record store regarding record sales.

Idealism

(43)

Oosterpoort is providing a stage to cool or high quality artists. At the Oosterpoort, the programmers often compare their music program at the end of the year to programs of various large mainstream festivals in order to see to see if their programme was representative or coherent with the programmes of similar venues.

Proposition 4: Market information regimes in the form of audience measurement systems are the most important sources of information bywhich intermediaries distinguish fields and are able to evaluate performance.

Audience Measurement Systems

The main institutions used to determine the popularity of an artist and the boundaries of the mainstream field such as the 3FM playlist are not based on audience measurement systems. The performance of the concerts at the Oosterpoort is mainly measured based on ticket sales versus budgeted ticket sales. “Some things do surprise me, such as Sandra van Nieuwland of The Voice of Holland, who sold twice as much tickets as expected” (Marije Brouwer). This may have been expected since she rapidly obtained the number one position in the Dutch top 40 charts. Paying more attention to the charts may occasionally pay for the programmers of the Oosterpoort.

Proposition 5: The use of dominant market information regimes in the form of audience measurement systems promotes the use of popular music over (up- and coming) alternative music.

(44)

for upcoming artists remains unclear with regard to the Oosterpoort case since they are not used extensively.

Proposition 6: Intermediaries/gatekeepers consciously use organizational routines in order to process the information available.

Routines

Marije argues that there is not one general routine or recipe which is used every time when booking artists, the process of music programming differs greatly just as the artists themselves. This is consistent with the nature of music and other cultural products in general, for which the quality cannot be judged by a fixed set of criteria (McLeese, 2010; Dolfsma, 2006). The decision making process of selecting artists for the Oosterpoort does not involve a strict conscious routine. While music programming may not be a fully structured process, it does show some form of structure over time. Marije looks at the weekly 3FM playlist when it is renewed in order to see which artists are hot at the moment. The programmers are almost completely dependant on other gatekeepers in the value chain, in this case the agents; virtually all artists are booked based on offers from agents. Practical factors such as touring schedules and budget are very important. Booking a foreign band which is not touring is next to impossible, since tour costs are high and a band cannot be flown in for one concert. The capacity of the concert venue largely determines which artists are offered by the agents, since budgets are directly linked to the capacity and the ticket price. An album release is often the reason for bands to organize a tour. If a band is doing a tour, programmers sometimes inform if there is a possibility to also come and play in the Oosterpoort as well. Agents cannot easily be substituted because most artists can only be booked via agents, competitors also get similar offers from agents, making the resource not imperfectly imitable.

5.2 Case 2: Vera

(45)

Sensemaking in Alternative Music

The market information regimes used by the Vera are mainly (online) music magazines, television shows, and social media (i.e. Youtube). Peter Weening is often browsing the internet for new artists to follow. He visits a variety of music blogs and websites including the Dutch 3voor12 music magazine, however, he notes that many reviews are of substandard quality. “In the past I would read the NME, the Sound, and other magazines and listen to radio stations. Nowadays it’s all internet” - Peter Weening. Youtube (number of views) is often used to determine the popularity of an artist, which is also important for the Vera. Especially with relatively unknown acts, this can be a good indicator of its popularity/hype and is therefore quite valuable. In addition to (online) magazines television shows sometimes also are a source for new music. Dutch television show De Wereld Draait Door is a source for valuable information regarding possible artists to book at the Vera. Radio stations and music charts are not used by the Vera as they provide information regarding artists which have passed the alternative or pop underground stage and have become more mainstream.

According to Peter Weening using this information will result in being too late, therefore the information is not particularly valuable. The public nature of the market information regimes used by the Vera leads me to conclude that these resources are not rare, and therefore not imperfectly imitable.

(46)

sales, especially when the the music is somewhat less alternative and more mainstream. At the Vera, most, if not all employees are music enthusiasts, they often come to Peter with suggestions for cool artists to book. Having these contacts and maintaining them requires a lot of time and effort, making it not easily replicable (imperfectly imitable). Getting the information and informing agents about preferences is essential and therefore definitely valuable for the Vera. The large amount of contact between venues and the high value of the resource leads me to believe that having such a network is not rare among competitors.

Shaping the Institution

The program is shaped based on the offers from agents, most of whom Peter has known for many years and who know what kind of music is a good fit for Peter and the Vera since he has made his preferences clear during previous meetings. The agents and the agencies are the most valuable resource when it comes to programming music at the Vera. 72% of the music program consists of artists booked through booking agencies such as Mojo, Friendly Fire, and a variety of other agencies, the other 28% includes (local) acts, festivals (e.g. Popronde, Eurosonic etc.) and events such as local talent competitions. Most of the bookings are a result of offers by the agents, Peter rarely goes after an artist himself. Similar to the Oosterpoort, agents often offer artists when they are doing a tour after they have released a new album. At the Vera, agents are not seen as mere sales representatives who are out to maximise sales, but as an important asset. Practical factors such as costs, budget (i.e. venue size), expected ticket sales, and availability are very important. Offers from agents are mostly based on the previously mentioned factors. All venues have regular contact with agents, making the resource not rare nor imperfectly imitable. Going around agents to book artists is next to impossible, they cannot be substituted. The programmers of the different concert venues in Groningen; Oosterpoort, Vera, and Simplon, also regularly meet in order to discuss their programs and to make sure that the artist’s are programmed at the most appropriate venue.

Proposition 2: Market information as a resource can only lead to a competitive advantage when competitors or new entrants are not able to obtain or imitate this resource.

(47)

Information as a Resource

Having described the most important resources, it appears that none of the resources in itself provides the opportunity for achieving competitive advantage. The access of competitors to the same resources leads me to believe that the only possibility to differentiate from competitors is to program artists before others do (speed) or to influence agents into offering artists to the Vera first. Peter argues that he is often willing to program multiple artists in one week if necessary, something he thinks competitors will not often do. While this might make a small difference, it is hard to imagine it having a large impact on achieving sustained competitive advantage.

Proposition 3: Intermediaries are bound to using information provided by market information regimes in order to shape institutions which satisfy and correspond with the consumer’s expectation patterns.

Anticipating Consumer Behavior

Referenties

GERELATEERDE DOCUMENTEN

including festivalization. ETEP needs to keep developing its formula and, according to various people from the ETEP organization, the organization needs to keep innovating its ideas

Both Madonna and Jay-Z signed with concert- organizer LiveNation (who had no experience with producing and promoting an album) to distribute and promote their new album,

Door de toenemende consolidatie van de industrie, waarbij een viertal majors het grootste aandeel in de markt bezitten en welke zich vanuit winstoogmerk vooral richten op de

As a result of music piracy, the dance music industry deals with decreasing revenues of cd sales (Downloadvergelijker 2008). Not everyone in the music industry considers piracy to

Alongside the growing appeal of KaZaA between the period of its launch and 2004 the p2p file sharing services struggled from fierce resistance from incumbents in the music

In conclusion, the results indicate that the commoditization and industry challenges have made it difficult for entrants in the digital music industry to capture the value

But we have just shown that the log-optimal portfolio, in addition to maximizing the asymptotic growth rate, also “maximizes” the wealth relative for one

Research purpose: This study focused on comparing employers’ expectations of employee skills in the tourism industry and the skills acquired by learners in the Culture, Art, Tourism,